Pillar 1: Graduation Quiz

Rules of the quiz.

You have to complete the quiz before moving on the next lesson.
Some questions have multiple answers, some do not.
Time is not restricted, take your time, think twice.
In order to play fair, you can’t cheat the results: After you submit the quiz, your answers become final. Like in the market, there is no free lunch.
After submitting the quiz:
- you will instantly receive your score,
- you will see your progress on the course curriculum page,
- you will see the correct answers, and a « remember that » explanation,
- you will be able to access the next lesson.
Enjoy !

PS/ Thank you to Mintpal for his help!

Quiz.

This quiz is a bit special as it contains some questions related to the whole pillar 1 but also about:

All the main blog posts of the website (especially the posts about pullbacks, trend reversal, and market structure).
ADX, a requirement to start pillar 2. In order to be on top of that, I invite you to revisit the ADX tutorial available for free on the website.

Good luck !

Trading pullbacks is effective because trend resumption occurs more frequently than reversals. * *

True

False

ADX helps determine when a trend: * *

Begins

Ends

Is strong enough to buy.

Is getting weaker.

Is ready to reverse.

Is moving into a consolidation phase.

Is headed for a blow-off top.

Pullback trades with the highest probability of success (continuation of trend) occur AFTER momentum divergences. * *

True

False

When the ADX is above 50, it: * *

Indicates a low probability of reversal.

Indicates a strong trend.

Indicates a high probability of continuation.

Indicates a low probability of reversal.

Means BTFD.

Means DMI- is in the “doom zone”.

DMI cross occurs when one dmi moves over the other and this is a lagging signal in a high volatility environment. * *

True

False

A bullish breaker: * *

Can only be found in an uptrend.

Can only be found in a downtrend.

Is referred to as “bullish” due to the direction of the trend prior to the Market Structure Break (MSB)..

Is a bullish order block (which is a bearish candle) that has become the “bullish breaker” after MSB occurs and is often tested as resistance.

Is effectively the low that made the high and creates a MSB when this low is taken out to the downside, thus creating the breaker.

ADX provides dynamic rules that allows one to take profit on conditions rather than at a set price. * *

True

False

To trade pullbacks **most** effectively, the following must be considered: * *

Market must be trending with no contradictory conditions (momentum divergences, overextension on htf).

No sharp opposite momentum and preferably reduced volatility.

Good follow through/reaction after a pullback.

Best entry would also have other confluences (levels, order blocks, fibonacci retracements).

Best undertaken after a climax.

Can occur with failure of a channel if immediate reversal occurs (immediately/within a ltf few bars).

A bullish order block is the last bearish candle before a sharp move up. * *

True

False

Mapping the market helps us: * *

Identify strong area of support/resistance.

Identify volatility.

Identify momentum.

Identify areas of confluence.

A bearish order block is the last bearish candle before a sharp move down. * *

True

False

Did I share feedback about the course in the discord/social networks, and am I supporting Subverto Trading Club by liking, retweeting, and commenting on social media posts where possible? * *

True

False

An SFP is a pattern that identifies: * *

An area where dumb money places its stop-loss.

An area where smart money places its stop-loss.

An area where liquidity is engineered.

An area where a trader should look for price action-based reversal.

An area where a trader should enter trend-following positions.

Stands for swing failure pattern and occurs when price moves fully above the prior pivot high or fully below the prior pivot low but promptly fails and forms a wick that attempted to resume the trend, fails, and reverses.

An SFP can occur in the setting of a breaker, where for a bearish breaker, price attempts to move back above that order block and does momentarily, but promptly fails and falls back below. * *

True

False

A bearish breaker is: * *

An order block that “failed” to provide the support it was supposed to provide.

An order block that will provide resistance while it was “theoretically” supposed to provide support.

An area where there is enough liquidity to resume the current trend.

Can only be found in an uptrend.

Is referred to as “bearish” due to the market structure “break” (MSB) that has occurred in the uptrend, which is “bearish” for price, resulting in that order block to then be referred to as a “bearish breaker”.

Is a bullish order block (which is a bearish candle) that has become the “bearish breaker” after MSB occurs and is often tested as resistance from below and if price fails to move back up through the breaker, the MSB and thus reversal, is confirmed on that time frame.

Is effectively the low that made the last high and creates a MSB when this low is taken out to the downside.

A resistance becomes: * *

Stronger every time prices touches it.

Weaker every time prices touches it.

A breaker is a “special” type of order block that leads to a break in market structure, and often becomes a key area of support or resistance once flipped. * *

True

False

Value does not move price. People move price. * *

True

False

For a trade where I, the trader, am now in profit and the trend is “with” my trade, if ADX is above 25 and rising, I should take profits aggressively because "profit is profit". * *

True

False

A turbo setup is for a high momentum market "only" setup. * *

True

False

A chill setup is: * *

A short-term setup.

A mid-term setup.

A risk-adjusted entry using among other factors, the volatility of price.

A risk-adjusted entry using momentum.

As a trader, I should: * *

FOMO/PANIC every time price is moving.

Assess context of the trend using the ADX + RLTE and look for chill entries in the direction of the trend.Take the chill entry on the current timeframe that just experienced a RLTE.

Take the chill entry on the current timeframe that just experienced a RLTE.

The RL90 is: * *

The 90-day regression line consensus of price.

Effectively the “sentiment” line.

Allows for greater weight to be given to more distant points in the past since older levels are stronger.

Utilized as an important component of the Babylon system.

RLTE is considered “mid-term setup”. * *

True

False

RL90 is the 90-day regression line consensus of price – thus effectively the “sentiment” line. * *

True

False

RLTPB employs the RL10 and RL30, which are optimal when moving tightly in an SQC (sideways quiet channel), with RL90 hovering just above/below without entering the river, and this situation indicates an expansion is likely to occur soon. * *

True

False

In an SQC where an optimal RLTPB is developing and volatility is very low, stops can be kept somewhat tighter as price expands in our trade direction b/c stop runs are less likely in low volatility conditions and even during the expansion phase of the RLTPB. * *

True

False

The 4 rules of Stop Loss management include: * *

Initial.

Breakeven.

Profit Protection.

SL are for losers.

Trading with mental stop loss is: * *

Good to avoid wicks.

Dangerous because you could fall for the trap: revisiting the decision not to take the loss under your invalidation point.

SL are for losers.

For "advanced" traders more than begginers.

The histogram is useful in determining maximal point of opportunity, especially during step 3 and 4 of an RLTE. * *

True

False

In utilizing the histogram to spot entry for a long – optimal setup is during step 3 and 4 of a bullish RLTE and a decelerating blue bar or even a green bar in the grey area below the zero line. * *

True

False

The histogram is useful for spotting divergences relative to price from wave peak to peak or wave trough to trough, but not between bars near each other (ie. not between bars that are on the same wave). * *

True

False

Considering the 4 stages/steps of a SL, Stage 1 of the Stop Loss Rules is where risk management is defined for the trade. * *

True

False

Breakeven phase for Stop Loss management should be instituted promptly once price moves away from my entry, irrespective of market structure. * *

True

False

Step 3 of Stop Loss management is the “Profit Protection” phase, set after our breakeven stop is moved up. * *

True

False

LEGENDS COURSE

Pillar 1: Graduation Quiz

Rules of the quiz.

Quiz.